How can Quebec Exploration Juniors recover a Lost Audience?

Presented by John KaiserOctober 23, 2019Montreal, Canada

Structural Problems for all Venture Listings

• Suitability rule for 55+ clients

• Fee based asset management vs full service in an age of online discount trading – the broker as advisor ishistory – robo advisory future

• Algo trading & short-selling on a down-tick

• Multiple trading platforms thatviolate price discovery principle of first come first serve

• Accredited Investor Rule for Financing too restrictive

Problems Unique to Resource Juniors

• Internet information: instant & ubiquitous –death of the rumour mill

• General ignorance about how to value a resource project, weak management grasp of economic geology

• 43-101 restrictions on forward lookingstatements, long time and expense between 43-101 « events »

• Difficulty assessing the size of the prize and placing intelligent outcome oriented bets

• The intrinsic quantifiable upside limit for anyresource project makes it hard to compete withmomentum based bubble stories

And yet none of this prevented a cannabis bubble from forming!

Financial Health of the Junior Resource Sector(Bottom-Fishers Beware!)

Based on last filed financials of trading TSXV resource listings

Universe of companies with a meaningful Quebec Focus

74 – TSXV (6.4% of *TSXV resource listings) 20 – TSX & NYSE 4 – CSE 4 – ASX

* Abitibi Royalties Inc (RZZ-V) * Focus Graphite Inc (FMS-V) * New Millennium Iron Corp (NML-V) * Saville Resources Inc (SRE-V)

Agnico-Eagle Mines Ltd (AEM-T) * Gaia Metals Corp (GMC-V) Newmont Goldcorp Corp (NEM-N) Sayona Mining Ltd (SYA-ASX)

* Albert Mining Inc (AIIM-V) Galaxy Resources Ltd (GXY-ASX) * Nickel North Exploration Corp (NNX-V) Seahawk Ventures Inc (SHV-CSE)

* Alto Ventures Ltd (ATV-V) * Galway Metals Inc (GWM-V) * NioBay Metals Inc (NBY-V) * Secova Metals Corp (SEK-V)

* Amex Exploration Inc (AMX-V) * Genesis Metals Corp (GIS-V) * Niocan Inc (NIO-V) * Sirios Resources Inc (SOI-V)

* Arianne Phosphate Inc (DAN-V) * Geomega Resources Inc (GMA-V) * Nippon Dragon Resources Inc (NIP-V) * Sphinx Resources Ltd (SFX-V)

* Azimut Exploration Inc (AZM-V) * Gespeg Resources Ltd (GCR-V) * Northern Shield Resources Inc (NRN-V) * Stelmine Canada Ltd (STH-V)

Balmoral Resources Ltd (BAR-T) Globex Mining Enterprises Ltd (GMX-T) * Northern Superior Resources Inc (SUP-V) * Stria Lithium Inc (SRA-V)

* Beauce Gold Fields Inc (BGF-V) * Golden Valley Mines Ltd (GZZ-V) * Nouveau Monde Graphite Inc (NOU-V) * Tarku Resources Ltd (TKU-V)

* BonTerra Resources Inc (BTR-V) * Granada Gold Mine Inc (GGM-V) * O3 Mining Inc (OIII-V) * TomaGold Corporation (LOT-V)

* Canada Carbon Inc (CCB-V) * Harfang Exploration Inc (HAR-V) * Oceanic Iron Ore Corp (FEO-V) * Tres-Or Resources Ltd (TRS-V)

Canadian Metals Inc (CME-CSE) Hecla Mining Company (HL-N) * Opawica Explorations Inc (OPW-V) Troilus Gold Corp (TLG-T)

Cartier Iron Corp (CFE-CSE) HPQ-Silicon Resources Inc (HPQ-V) * Opus One Resources Inc (OOR-V) * Typhoon Exploration Inc (TYP-V)

* Cartier Resources Inc (ECR-V) IAMGOLD Corporation (IMG-T) * Orford Mining Corp (ORM-V) * Vanadium One Iron Corp (VONE-V)

Century Global Commodities Corp (CNT-T) * Imperial Mining Group Ltd (IPG-V) Osisko Gold Royalties Ltd (OR-T) * Vanadiumcorp Resource Inc (VRB-V)

Champion Iron Ltd (CIA-T) * Jourdan Resources Inc (JOR-V) Osisko Mining Inc (OSK-T) * Vanstar Mining Resources Inc (VSR-V)

* Chibougamau Independent Mines Inc (CBG-V) * Kintavar Exploration Inc (KTR-V) * Pasofino Gold Ltd (VEIN-V) * Vantex Resources Ltd (VAX-V)

* Commerce Resources Corp (CCE-V) * Lomiko Metals Inc (LMR-V) * Pershimex Resources Corp (PRO-V) * Vertical Exploration Inc (VERT-V)

* Critical Elements Lithium Corp (CRE-V) * Manganese X Energy Corp (MN-V) * Powerore Inc (PORE-V) * Vior Inc (VIO-V)

* Delta Resources Ltd (DLTA-V) * Maple Gold Mines Ltd (MGM-V) * Probe Metals Inc (PRB-V) * Visible Gold Mines Inc (VGD-V)

* Dios Explorations Inc (DOS-V) * Mason Graphite Inc (LLG-V) * Quebec Precious Metals Corp (CJC-V) Wallbridge Mining Co Ltd (WM-T)

* Dixie Gold Inc (DG-V) Metals Australia Ltd (MLS-ASX) * QMX Gold Corp (QMX-V) Wesdome Gold Mines Ltd (WDO-T)

Eastmain Resources Inc (ER-T) MetalsTech Limited (MTC-ASX) * Quinto Resources Inc (QIT-V) Yamana Gold Inc (YRI-T)

Eldorado Gold Corp (ELD-T) * Midland Exploration Inc (MD-V) * Radisson Mining Resources Inc (RDS-V) Yorbeau Resources Inc (YRB-T)

* Falco Resources Ltd (FPC-V) Monarques Gold Corp (MQR-T) Renforth Resources Inc (RFR-CSE)

* Fancamp Exploration Ltd (FNC-V) Nemaska Lithium Inc (NMX-T) Royal Nickel Corp (RNX-T)

Featured on the KRO Quebec Resource Center

Why have resource juniors been marginalized by other speculative sectors?

• Emerging Sector: winner take all dynamic within a « sky is the limit » context – cannabis, technology, biotech but not mining

• Metal Price Optionality: price uptrends driven by supply-demandimbalances arising from macreconomic growth (ie super-cycle), supplydisruptions (rare earths, cobalt), innovative uses (electric vehicles), fashion shifts (gold) – none of which the resource junior controls

• Discovery: adding profitable new supply that will not upset the market

Since 2011 metal price trends have been sideways or shortlived and world class discoveries with replication implications have not happened.

Gold: a proxy for uncertainty Copper: a proxy for macro-economics

Cobalt: a proxy for new demand & supply disruption Scandium: a winner take all dynamic?

Discovery: it’s all about the fundamental outcome!

Why do people speculate, or should we say “gamble”?

To make lots of money – and why do they think they will?

• they feel lucky

• they feel smarter than others – ahead of the curve

• they feel they have an inside edge

• they feel they have worked harder thanothers to identify the best bet

• They feel the trend is their friend

To be entertained

• experiencing the adrenaline rush of being right

• the pleasure of the quest

• the perception that one is influencingthe outcome

• participating in an ongoing discourse

Which applies to the junior resource sector?

Selling the Story: Push versus Pull

Push Marketing

• Old school broker as network hub

• Investor Relations firms

• Presentation lunches

• Conferences - presentations

• Mass broadcast – mail, email & Twitter blasts

• Online Media Hubs: BNN, INN, Kitco

• Newsletter writers – sponsored, bribed, independent

• Social Media – ad placement

• Social Media – influencers

Pull Marketing

• Conference – exhibit booths

• Stock Forums – Stockhouse, Hot Copper, CEO.ca

• Private Clubs

• Corporate Web Site

• One on One engagement

How do you achieve “stickiness” in the form of a longer term shareholder betting on a fundamental outcome rather than a short term move?

Economic Geology: the Size of the Prize

Key Concepts

• Discounted Cash Flow Model

• Fair Value: Certainty times Prize

• Uncertainty Ladder for Resource Projects

The Share Collective

Currently an expensive outcome visualization tool, but imagine what it could be!

The Millennial Opportunity

• As millennials shift into family formation mode they will no longer have time for shooter video style online engagement

• They will experience growing aversion to momentum trading loss risk

• They will feel an even greater need to boost income through capital gains

• They will continue to feel a lot smarter than Boomers and Generaton X’ers, but theyare profoundly ignorant about how the mining-exploration sector works (in otherwords no worse than most of the rest of us)

• While having children will raise privacy concerns, reducing online visibility, the addiction to being an influencer will not

• The pressure to sustain one’s status as a trending influencer will hit the wall

• For entertainment they will seek engagement in longer term, less time consuming« stories »

Imagine what the Share Collective could be,

if it had a stadium where members could see themselves be seen!

Bringing back lost audiences to the Quebec juniors

• Encourage private online communities such as an investmentclub using a Slack Workspace

• Start with the communities local to an exploration play

• Pray that the Share Collective growsbeyond a valuation tool

And the junior resource sector in general!

Slack: private forums ideal for “clubs”

Questions?

Monetarily illuminating a project’s fundamental potential in a dynamic, interactive crowd-based eco-system TSC would revolutionize how a very large audience interacts with resource juniors, especially ones at exploration stage.

Web Site: KaiserResearch.comEmail: jkaiser@KaiserResearch.comTwitter: @KaiserResearchSkype: KaiserResearchTel: (925) 631-9747346 Rheem Blvd #107,Moraga, CA, 94556, USA

Please ContactJohn Kaiser